CSC turns down rival US retailers offer

Bid to buy the Trafford Centre

Bid to buy the Trafford Centre

The owner of one of the biggest retailers in the country – the Capital Shopping Centre, has turned down a recent bold £3 billion offer from a rival US company.

The Simon Property Group of the US – which owns 5% of CSC, had made the offer amid growing tensions between the companies over CSC’s reported attempt to buy Manchester’s Trafford Centre.

CSC had made an offer last month to John Whittaker’s Peel holding to buy out the property. The company had offered to complete the transaction by offering a 25 percent stake in CSC – valued at about £1.6 billion and board membership; the deal had no cash component. The Simon Group did not quite agree with CSC’s offer.

The open bid for CSC is an attempt by the Simon Group to ruin the Extraordinary General Meeting scheduled for Monday to discuss the Trafford Centre acquisition.

“This is yet another attempt by Simon to frustrate the Trafford Centre acquisition”, CSC said in a statement.

The Simon group has offered 425p for each CSC share, valuing the company at £2.94 billion. The price represents a 7 percent premium over Tuesdays close. However, the share price rose by 19.3p to 415.6p on Wednesday on the back of the take over news.

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